Booker puts focus on India as profits take leap

Booker added 17,000 customers to 431,000 in the year to March 26, pushing up pre-tax profits by 21 per cent to 57.2m.

The food wholesaler has 173 branches in the UK, but also reported a strong performance from its first outlet in India, which opened in Mumbai last September.

The Wellingborough-based company plans to open another Mumbai branch this year as well as a pilot franchise branch in another Indian city.

Evolution analyst Dave McCarthy said: "It is not unreasonable to imagine that India will one day represent the lion's share of the company – and it remains a low risk venture."

In the UK, the group said its drive into the catering market was paying off with a 9.1 per cent rise in like-for-like sales over the year.

The group meanwhile plans to convert another 20 branches to its new Extra format with improved layout, signage and ranges. The group currently has 91 stores in the revamped style, which it said has gone down well with customers.

Trading in the first seven weeks of the current financial year is in line with expectations, although the food wholesaling market remains fiercely competitive and the economy tough, according to Booker.

"Nevertheless we expect to continue to make progress in this challenging environment," chief executive Charles Wilson said.

The group posted total sales of 3.4bn last year including 1.3bn in tobacco revenues. Booker also strengthened its balance sheet over the year, turning net debt of 25m into a 7m surplus.

Mr McCarthy added: "Booker trades on a discount to the sector, but we believe a rerating is due."